Doha development round critical to world trade

London, May 23 (UNI) India today cautioned the World Trade Organisation (WTO) that the global trade will always be at risk unless the development dimension of the Doha round is met and developing countries prosper.

In his opening statement at the WTO's trade policy review for India which got underway at the world trade body headquarters in Geneva, Commerce Secretary G K Pillai said the rapid growth of developing countries is a must for a truly global trade order to flourish.

''India stands committed to meet its obligations under the mandate of the July Framework and the Hong Kong Ministerial Declaration. Developed countries must recognise that our destinies are intertwined,'' Mr Pillai said.

Under WTO's Hong Kong Ministerial Declaration adopted in last December, the Philippines is allowed to designate a specific number of agricultural products with zero or minimum tariff reduction. It also allows the country to implement safety nets for local farmers against increased volume of imports and price depression.

The July-2004 framework hammered out at Doha, emphasises the need to push ahead the talks in five areas, namely agriculture, non-agricultural market access (NAMA), development issues, trade facilitation and services. Regarding existing commitments in the rest of the Doha mandate, including intellectual property, dispute settlement, rules and environment, the agreement simply reaffirms continuing negotiations.

Like most developing countries, agriculture in India also remains the backbone of her rural economy. Over 81 per cent of India's farmers are small and marginal with holdings of two hectares or less.

Besides, more than 127 million such cultivators, there are over a 100 million landless agricultural labourers, most eking out a bare subsistence from the sector.

India is home to 22 per cent of the world's poor and rural poverty is far higher than urban poverty. The pattern of development has left nearly 60 per cent of India's population dependent on the agriculture sector. To provide inclusive growth, this vulnerable sector of the economy needs special care and protection, Mr Pillai said.

Hence, the development dimension of the Doha development round gives an immediate and sharp focus to this crying need, he added.

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